Whether you’re new to cryptocurrency or have been trading, investing and using bitcoins and altcoins ever since they were created, picking a trading platform can be an arduous task especially with multiple possible choices. There is a constant debate on what the best trading platform is but it is impossible to crown a single option as the best, especially since there are a number of factors that need to be looked at. It is also important to note that the quality of a trading platform is largely dependent on the usability, making it highly subjective. The best trading platform for person A may be the worst for person B and vice versa.
So, making this decision would require you to answer these 3 questions:
1. What is a crypto trading platform?
2. How would you define the “best” crypto trading platform?
3. What are your needs in crypto trading?
Crypto Trading Platform Definition
Generally, a crypto trading platform is where cryptocurrency wallet owners can conduct exchanges. Think of it as a simple trading area where people gather, hoping to bring what they have and barter it for something with greater value. In this case, there is no physical plaza or market that they go to and there are no actual real-world assets that they trade. However, the people in this digital market are just as real as the vendors that you meet in your local market, and the cryptocurrency they trade also has market values that are just as real as the cash in your wallet.
There are multiple trading platforms available for use.
The versatility in cryptocurrency trading capabilities is also different for every site, as some may place emphasis on just the major coins while others would provide a wide range of coin-to-coin exchange. User preference would depend since there are those that would rather trade in a specific set of coins while a few more adventurous individuals would like to have more options. There is definitely a need to identify what cryptocurrency the site is open to trade.
Lastly, where can you open the trading platform? Having a trading platform that is easily accessible is important to keep you updated on the exchange rates and the trends. There may be a need for mobile applications available to allow easy transactions through a few quick swipes. Some traders may not require a mobile-friendly trading platform while others would certainly prefer being able to check on these values from their phones. These different trading platforms present traders with a variety of options to fit their needs.4
The “Best” in Trading
When I was a kid, I had a small group of friends where each of us had our own strengths. I was the athlete of the group, and there was another who was a consistent honor student and was the smartest, while another girl had the most angelic voice among us. We were each the best at our own fields and, much like us, a large set of trading platforms can be categorized based on what they can offer you.
A good way to find the best one for you is to fill in this blank:
The Best Transaction Fees
For a few traders, the best trading platform would be the one which could offer the lowest transaction fees. Your profits could be greatly offset by the costs of conducting a trade. A majority of exchange sites have higher fees in exchange for a simpler user experience. While relatively acceptable for a few beginners, people with the know-how to operate other platforms would certainly opt for lesser fees.
The Best Security
While it is common sense to choose a well-known, respected and reputable trading platform to ensure that trades could be done securely, some may be willing to take the risk with newer, less known options that they find would better suit them. While you must always take care when dealing in cryptocurrency, there may always be hidden rewards in taking certain risks.
The Best User Interface
Though some may not be affected by this, there are individuals who would prefer sites that present their data well. Personal preferences on how the sites are presented could serve as a tie breaker when deciding on the use between two sites that are almost equal in all other aspects. Some would choose simplicity over anything else, whereas others would not place too much emphasis on this aspect. Like all the other factors, this comes down to user preference.
Crypto Trading Needs
When making a choice between products, it is always important to identify what aspects you are most interested in. Whenever I decide to purchase a new smartphone, a major factor in my decision-making process is how good the camera is. The next thing that I look at is how much data can the phone store? Is the memory expandable or would I have to rely on constantly saving my files online? These may not be the same questions people ask themselves when buying a new phone but since I’m the one who is going to be using the phone, I need to identify what I need from the gadget.
Your needs would depend on your level of expertise in the cryptocurrency market. Are you a beginner or an expert, or would you consider yourself as being somewhere in between? Newbies in trading may not prefer sites that would bombard them with the information they are unable to understand or even apply in their trading. However, experts in the field may also have a preference of data sets or would want to see everything about cryptocurrency on their screens. While having information easily available to you would be best when conducting trading, there is no use of data which the user cannot make use of. These numbers would become counterproductive and simply confuse the new trader instead.
Making a decision may not be easy, and finally committing to a trading platform would require a few trial-and-error runs. But, being able to identify what it is you are looking for and what it is you need would help you get started. Don’t be in too much of a rush in settling on a single trading platform. You can check out or reviews on Trading to find more information on the different trading platforms available.